Seniors Beware: What You Need to Know About New Jersey's Exit Tax When Selling Your Home and Moving Out of State

Exiting New Jersey: The Lowdown on Realty Transfer Tax for Seniors Selling Their Homes and Moving Out of State

Seniors in New Jersey who are considering relocating to another state need to be aware of the state's realty transfer tax, also known as the Exit Tax. Introduced in 2007, this tax is a flat 2% of the sale price of the property, with a maximum of $20,000. While this tax is not unique to seniors, it can be a significant financial burden for those on a fixed income.

However, there are some exemptions from the Exit Tax, such as deferrals for military personnel and those who are selling their primary residence and buying another in New Jersey within 180 days. Additionally, those selling a property for less than $50,000 may be exempt from the tax.

The availability of exemptions from the realty transfer tax in New Jersey can depend on the individual circumstances of the sale. It is therefore advised that individuals seeking to sell their property consult with an attorney or a real estate agent who has knowledge about the realty transfer tax laws in New Jersey. This will help determine whether they qualify for any exemptions and how to proceed with the sale while minimizing the impact of the tax on their finances.

In summary, seniors in New Jersey who are planning to sell their homes and move out of state need to be aware of the realty transfer tax and take steps to prepare for its potential financial impact.